The National Fostering Agency Group bought Acorn Care Education Group in August last year creating a single organisation worth an estimated £400m.
However, last month the Competition and Markets Authority (CMA) announced it would be conducting a detailed merger investigation because of concerns that the coming together of the two foster placement service providers would give them a monopoly in some areas.
The initial CMA investigation reviewed all local authority framework areas in which the companies overlap in the UK, and found concerns in three framework agreement areas: Wales, Norfolk and the framework agreement area covering Luton, central Bedfordshire and Bedford.
In order to address concerns, the National Fostering Agency has offered to divest, or sell-off, parts of Acorn Care's business in three areas - Wales, Luton and Norfolk. It has said it will also allow the CMA to approve the buyer, or buyers.
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